Wells Fargo Bank v. Country Place Condominium Ass'n
304 Mich. App. 582
| Mich. Ct. App. | 2014Background
- Wells Fargo Bank sues Country Place Condominium Ass'n over unpaid condo assessments and fees tied to a unit in Northville.
- Plaintiff acquired the unit via a March 8, 2011 sheriff's sale; sheriff's deed recorded March 15, 2011; defendant filed a lien for assessments on September 20, 2011.
- Trial court held plaintiff not liable for pre-acquisition assessments; issued judgment in defendant's favor for post-acquisition charges and fees, plus costs.
- Statutes at issue: MCL 559.158 (foreclosing mortgagee not liable for pre-acquisition assessments) and MCL 559.211 (liability upon sale or conveyance of a condo unit).
- Court held plaintiff acquired title on March 8, 2011, via equitable title; redemption period expiration converted equitable title to full title dating back to the sale.
- Plaintiff’s slander of title claims were rejected; summary disposition granted to defendant on claims and counterclaims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| When does liability for assessments attach under MCL 559.158? | Acquisition of title occurs after redemption expires; pre-acquisition assessments not liable. | Acquisition creates liability for post-sale assessments regardless of redemption window. | Liability begins on March 8, 2011, the acquisition date; pre-acquisition assessments do not apply. |
| What is the meaning of 'acquisition of title' under MCL 559.158? | Acquisition occurs only after redemption expires; title not vested until then. | Equitable title acquired at sheriff's deed suffices for liability; title need not be absolute. | Acquisition includes equitable title obtained on March 8, 2011; not required to be absolute title. |
| Does MCL 559.211 apply to an assignment of a mortgage via MERS? | MERS assignment triggers condo purchaser liability for all unpaid assessments. | MERS assignment is not a sale/conveyance of a unit and thus not within 559.211. | 559.211 does not apply to mortgage assignment; not a sale or conveyance of the unit. |
| Were the slander of title claims properly dismissed? | Defendant knowingly filed an invalid lien to harass title; malice shown. | Lien was filed in good faith under reasonable interpretation of statutes; no malice. | Claims properly dismissed; no showing of malice and the lien pursuit was reasonably grounded. |
| Was summary disposition appropriate on the counterclaims? | Plaintiff failed to pay assessments; counterclaims warranted foreclosure or damages. | Plaintiff made no payments; counts support relief under MCR 2.116(C)(10). | Yes; summary disposition proper for lack of payments and meritorious defenses. |
Key Cases Cited
- Dunitz v. Woodford Apartments Co., 236 Mich 45 (Mich. 1926) (equitable title vesting after sheriff's sale; sale creates equitable interest)
- Sanford v. Cahoon, 63 Mich 223 (Mich. 1886) (redemption period effects on title)
- Stout v. Keyes, 2 Doug. 184 (Mich. 1845) (relation-back concepts in title context)
- Gleiberman v. Janowitz, 248 Mich 12 (Mich. 1929) (malice required for slander of title; cannot be inferred from invalid lien)
- Coventry Parkhomes Condo Ass’n v Fed Nat’l Mtg Ass’n, 298 Mich App 252 (Mich. Ct. App. 2012) (559.211 addresses liability upon sale/conveyance; assignment not a sale)